Legal Profession (Accountant’s Report) Rules

he is practising in Singapore and is authorised to practise as a public accountant under the Accountants Act;

he has neither been at any time during the accounting period, nor subsequently, before giving the report, become —

a partner or an employee of the solicitor or of any partner of his; or

a partner, a director, a member or an employee of a limited liability law partnership, a law corporation, a Joint Law Venture, a constituent foreign law practice (of a Joint Law Venture), a Qualifying Foreign Law Practice or a licensed foreign law practice in which the solicitor is a partner or director; and

he is not subject to a notice of disqualification under paragraph (2) or under rule 11A(4) of the Legal Profession (Solicitors’ Accounts) Rules.

the Public Accountants Oversight Committee has made a disciplinary order against a public accountant under section 52(2) of the Accountants Act (Cap. 2) or an equivalent provision under the repealed Accountants Act (Cap. 2, 2001 Ed.); or

the Council is satisfied that a solicitor has not complied with the provisions of the Legal Profession (Solicitors’ Accounts) Rules (R 8) in respect of matters not specified in an accountant’s report and that the accountant who gave the report was negligent in giving the report, whether or not an application be made for a grant out of the Compensation Fund,the Council may, in its discretion, at any time notify the accountant that he is not qualified to give an accountant’s report.

be qualified to give an accountant’s report; and

be engaged or employed as a book-keeper for the purposes of rule 11(8) of the Legal Profession (Solicitors’ Accounts) Rules.

examine the book-keeping system in every office of the solicitor so as to enable the accountant to verify that such system complies with rule 11 of the Legal Profession (Solicitors’ Accounts) Rules (R 8), and is so designed that —

an appropriate ledger account is kept for each client;

such ledger accounts show separately from other information particulars of all client’s money, conveyancing money and other money received, held or paid on account of each client; and

transactions relating to client’s money and any other money dealt with through a client account, and transactions relating to conveyancing money dealt with through a conveyancing account or conveyancing (CPF) account, are recorded in the solicitor’s books so as to distinguish such transactions from transactions relating to any other money received, held or paid by the solicitor;

make test checks of —

postings to clients’ ledger accounts from records of receipts and payments of —

client’s money and any other money dealt with through a client account; and

conveyancing money dealt with through a conveyancing account or conveyancing (CPF) account; and

the costs of each client account, conveyancing account and conveyancing (CPF) account (if any) and of such records;

compare —

a sample of lodgments into and payments from a client account (as shown in bank statements) with the solicitor’s records of receipts and payments of client’s money and any other money dealt with through the client account; and

a sample of lodgments into and payments from a conveyancing account or conveyancing (CPF) account (as shown in bank statements) with the solicitor’s records of receipts and payments of conveyancing money dealt with through the conveyancing account or conveyancing (CPF) account, as the case may be; and

enquire into and test check the system of recording costs and of making transfers in respect of costs from each client account, conveyancing account and conveyancing (CPF) account (if any);

make a test examination of such documents as he shall request the solicitor to produce to him with the object of ascertaining and confirming —

that the financial transactions, (including those giving rise to transfers from one ledger account to another) evidenced by such documents, are in accordance with the Legal Profession (Solicitors’ Accounts) Rules; and

that the entries in clients’ ledger accounts reflect those transactions in a manner complying with the Legal Profession (Solicitors’ Accounts) Rules;

extract (or check extractions of) balances on the clients’ ledger accounts during the accounting period under review at not fewer than 2 dates selected by the accountant (one of which may be the last day of the accounting period), and at each such date —

compare the total as shown by such ledger accounts of the liabilities to the clients (including those for whom trust money is held in a client account, or conveyancing money is held in a conveyancing account or conveyancing (CPF) account), with the cash book balances on every client account, conveyancing account, conveyancing (CPF) account (if any), client’s fixed deposit account with a bank or approved finance company (including such a fixed deposit account in which trust money is held) and other fixed deposit account; and

reconcile such cash book balances and fixed deposit with confirmations obtained by the accountant direct from the bank or approved finance company;

satisfy himself that reconciliation statements have been kept in accordance with rule 11(4) of the Legal Profession (Solicitors’ Accounts) Rules (R 8);

make a test examination of the clients’ ledger accounts in order to ascertain whether the payments made from any client account, conveyancing account or conveyancing (CPF) account in respect of any client are in excess of the money held on behalf of that client in that account;

peruse such office ledger and cash accounts and bank statements as the solicitor maintains with a view to ascertaining whether —

any client’s money has not been paid into a client account; or

any conveyancing money has not been paid into a conveyancing account or, if paid by the Central Provident Fund Board, into a conveyancing (CPF) account; and

ask for such information and explanations as he may require arising out of sub-paragraphs (a) to (i).

to extend his enquiries beyond the information contained in the relevant documents relating to any client’s matter produced to him supplemented by such information and explanations as he may obtain from the solicitor;

to enquire into the stocks, shares, other securities or documents of title held by the solicitor on behalf of his clients; or

to consider whether the books or accounts of the solicitor have been properly written up in accordance with rule 11 of the Legal Profession (Solicitors’ Accounts) Rules at any time other than the times as at which his examination of those books and accounts takes place.

becomes under an obligation to deliver his first accountant’s report; or

having been exempt under rule 7 from delivering an accountant’s report in the preceding practice year, becomes under an obligation to deliver an accountant’s report,the accounting period shall begin on the date upon which he first held or received client’s money or conveyancing money, or, after such exemption, began again to hold or receive client’s money or conveyancing money.

shall end on the date upon which he ceased to hold or receive client’s money or conveyancing money, or both;

may cover less than 12 months; and

shall in all other respects comply with the requirements of section 73(3) of the Act.